Market Overview

The Eastern Company Adopts Incentive Compensation Clawback Policy

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The Eastern Company (NASDAQ: EML) revealed Thursday its Board has adopted an incentive compensation clawback policy as part of the Board's ongoing efforts to strengthen its corporate governance, as well as risk management. According to the company, the policy is meant to ensure that incentive compensation is paid based on exact financial and operating data apart from the correct calculation of its performance against incentive targets.

The Eastern Company said the policy required its Compensation Committee to seek the recovery of incentive compensation in case of fraud or misconduct or a restatement of the financial or operating results of the Company that results in the payment of inflated incentive compensation.

The company's Chairman, James Mitarotonda, said, "The Eastern Board has adopted an incentive compensation clawback policy as part of its ongoing commitment to sound corporate governance and risk management policies."

He added, "This policy builds upon prior actions recently taken by the Board – such as the elimination of the classification of the Board of Directors, the adoption of a majority voting standard for the election of Directors, and the termination of the Company's "poison pill" rights plan – to improve Eastern's corporate governance and align management and shareholder interests."

 

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